Publication: Influence of accounting information on the performance of small scale business in Juba Payam, South Sudan
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2024-07
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Mount Kenya University
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Abstract
As the collective performance of small businesses is viewed from the perspective of
accounting data, it becomes evident that there is a serious lack of effective utilization of
accounting information in South Sudan. Despite being supported by ample evidence from
various countries demonstrating the positive correlation between small business growth and
the strategic use of accounting data, the awareness and implementation of such practices
remain limited in South Sudan. The primary aim of the research was to explore and analyze
the impact of bookkeeping data on the operational proficiency and general performance of
small scale businesses, with a specific focus on Juba Payam. Within this scope, the research
objectives sought to identify the multifaceted roles of accounting information in enhancing
performance, examine how traditional accounting practices influence business outcomes in
South Sudan, and determine the varying influences of different types of accounting data on
small business success rates within the region. To undertake this investigation, a
comprehensive research approach combining case study methods with quantitative analysis
was adopted. The target population was 488 registered business enterprises according to the
South Sudan Business Registry where a sample size comprising 49 respondents was selected
through simple random sampling techniques, while a descriptive survey research approach
was utilized to gather pertinent data. Primary data was collected through questionnaires and
analyzed using SSPS and Excel. The reliability of the questionnaire was assessed using the
pilot test findings while the validity test was carried using content validity which was
essential to ensure that the data gathering, analysis, and interpretation all fell within the scope
of the research objectives
Notably, findings from the study revealed that a substantial 71% of respondents from small
businesses in Juba Payam maintained key ledgers such as sales ledger, purchase ledger, cash
book, petty cash book, and general ledger to record and manage their financial transactions
effectively. In stark contrast, 60% of respondents disclosed that they entrusted qualified and
competent external sources to maintain their accounting records, which resulted in the
production of comprehensive financial statements including balance sheets, profit and loss
accounts, cash flow statements, and other crucial financial reports. Moreover, the research
highlighted that 29% of respondents leveraged accounting information for strategic decision-
making aimed at fostering business growth, while 60% relied on such data to fulfill their
legal obligations, encompassing intricate calculations and periodic tax deposits, such as
VAT and other statutory dues. Based on the insightful findings, the research advocates for a
thorough review of the existing governmental policies related to small and medium
businesses in South Sudan to ensure their alignment with the unique features and developing
needs of local enterprises.
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Keywords
Collective performance, Financial statements, Statutory dues, Fostering business growth